Morgan Stanley Down Again As Moody's Reviews Rating

More pain at Morgan Stanley, whose stock is trading down in the
$10s this morning.

AP: Credit
ratings agency Moody's Investors Service late Thursday placed the
long-term debt ratings of Morgan Stanley on review for a possible
downgrade.

Morgan Stanley currently carries a senior debt rating of "A1,"
which is considered investment grade.

The review is based on an expected downturn in global capital
markets activity, which will reduce Morgan Stanley's revenue and
profit in 2009 and possibly beyond, Moody's said in a
statement.Morgan Stanley will also need to adjust its operations
to operate as a bank holding company, which could limit profit
opportunities in the future, Moody's said. But, the ratings
agency noted that Morgan Stanley's risk profile could also be
reduced by the change in structure, which would be a positive
change.

So thanks to Moody's for giving us a warning, though somehow we
already sensed something might be up.